Noninterest revenue

For a discussion of the components of and accounting policies for the Firm’s noninterest revenue, see Note 7 on pages 228–229 of JPMorgan Chase’s 2012 Annual Report.

The following table presents the components of investment banking fees.



	Three months ended June 30,				Six months ended June 30,
(in millions)	2013		2012		2013		2012
Underwriting
Equity	$	457	$	250	$	730	$	526
Debt	956		654		1,873		1,477
Total underwriting	1,413		904		2,603		2,003
Advisory	304		353		559		635
Total investment banking fees	$	1,717	$	1,257	$	3,162	$	2,638

Principal transactions revenue includes realized and unrealized gains and losses recorded on derivatives, other financial instruments and private equity investments.

Principal transactions revenue also includes certain realized and unrealized gains and losses related to hedge accounting and specified risk management activities disclosed separately in Note 5, including: (a) certain derivatives designated in qualifying hedge accounting relationships (primarily fair value hedges of commodity and foreign exchange risk), (b) certain derivatives used for specific risk management purposes, primarily to mitigate credit risk, foreign exchange risk and commodity risk, and (c) other derivatives, including the synthetic credit portfolio. See Note 5 on pages 131–142 of this Form 10-Q for information on the income statement classification of gains and losses on derivatives.

Principal transactions revenue also includes revenue associated with market-making and client-driven activities that involve physical commodities. The Firm, through its Global Commodities Group within CIB (“Commodities Group”) generally provides risk management, investment and financing solutions to clients globally both through financial derivatives transactions, as well as through physical commodities transactions. On the financial side, the Commodities Group engages in OTC derivatives transactions (e.g., swaps, forwards, options) and exchange-traded derivatives referencing various types of commodities (see below and Note 5 - Derivative instruments for further information). On the physical side, the Commodities Group engages in the purchase, sale, transport, and storage of power, gas, liquefied natural gas, coal, crude oil, refined products, precious and base metals among others. Realized gains and losses and unrealized losses arising from market-making and client-driven activities involving physical commodities inventories that are generally carried at the lower of cost or market (market approximates fair value), subject to any applicable fair value hedge accounting adjustments, are recorded in principal transactions revenue. Fees relating to storage and transportation are recorded in other income. These fees are generally recognized over the arrangement period. Expenses relating to such activities are recorded in other expense (see Note 10 on page 146 of this Form 10-Q for further information).

The following table presents all realized and unrealized gains and losses recorded in principal transactions revenue by major underlying type of risk exposures.



	Three months ended June 30,					Six months ended June 30,
(in millions)	2013		2012			2013		2012
Trading revenue by risk exposure
Interest rate	$	564	$	1,228		$	1,153	$	2,573
Credit^(a)	733		(3,583		)	1,878		(4,567		)
Foreign exchange	554		245			1,043		793
Equity	888		712			2,010		1,535
Commodity^(b)	541		617			1,229		1,244
Total trading revenue	3,280		(781		)	7,313		1,578
Private equity gains/(losses)^(c)	480		354			208		717
Principal transactions^(d)	$	3,760	$	(427	)	$	7,521	$	2,295


(a)	Included $4.4 billion and $5.8 billion of losses incurred by CIO from the synthetic credit portfolio for the three and six months ended June 30, 2012. In June 2012, CIO identified a portion of the synthetic credit portfolio that aggregated a notional amount of approximately $12 billion; subsequent losses of $240 million are included in the 2012 amounts.

(b)

Includes realized gains and losses and unrealized losses on physical commodities inventories that are generally carried at the lower of cost or market (market approximates fair value), subject to any applicable fair value hedge accounting adjustments, and gains and losses on commodity derivatives and other financial instruments that are carried at fair value through income. Commodity derivatives are frequently used to manage the Firm’s risk exposure to its physical commodities inventories related to market-making and client-driven activities. Gains/(losses) related to commodity fair value hedges were $114 million and $203 million for the three months ended June 30, 2013 and 2012, respectively. Gains/(losses) related to commodity fair value hedges were $140 million and $(279) million for the six months ended June 30, 2013 and 2012, respectively.


(c)	Includes revenue on private equity investments held in the Private Equity business within Corporate/Private Equity, as well as those held in other business segments.


(d)	Principal transactions revenue includes DVA related to structured notes and derivative liabilities measured at fair value in CIB. DVA gains/(losses) were $355 million and $755 million for the three months ended June 30, 2013 and 2012, respectively, and $481 million and $(152) million for the six months ended June 30, 2013 and 2012, respectively.

The following table presents the components of asset management, administration and commissions.



	Three months ended June 30,				Six months ended June 30,
(in millions)	2013		2012		2013		2012
Asset management^(a)
Investment management fees^(b)	$	1,948	$	1,607	$	3,773	$	3,152
All other asset management fees^(c)	139		68		263		131
Total asset management fees	2,087		1,675		4,036		3,283

Total administration fees^(d)	548		559		1,075		1,094

Commission and other fees
Brokerage commissions	625		585		1,205		1,240
All other commissions and fees	605		642		1,148		1,236
Total commissions and fees	1,230		1,227		2,353		2,476
Total asset management, administration and commissions	$	3,865	$	3,461	$	7,464	$	6,853


(a)	The Firm has contractual arrangements with third parties to provide certain services in connection with its asset management activities. Generally, amounts paid to third-party service providers are expensed, such that asset management fees are recorded gross of payments made to third parties.


(b)	Represents fees earned from managing assets on behalf of Firm clients, including investors in Firm-sponsored funds or owners of separately managed investment accounts.


(c)	Represents fees for services that are ancillary to investment management services, such as commissions earned on the sales or distribution of mutual funds to clients.


(d)	Predominantly, includes fees for custody, securities lending, funds services and securities clearance.

Other income

Included in other income is operating lease income of $363 million and $328 million for the three months ended June 30, 2013 and 2012, respectively, and $712 million and $651 million for the six months ended June 30, 2013 and 2012, respectively.